Free tools · Logistics and operations
EOQ calculator
sqrt(2DS/H) when demand, order cost, and holding cost are all entered.
What this tool does
Economic order quantity on this page is the square root of two times annual demand times order cost, divided by holding cost per unit. All three inputs have to be positive numbers you supply. Demand is not forecast by the tool. Order cost is the cost of placing one order, as you count it. Holding cost is per unit for the period you used for demand, usually a year. If any input is missing, the tool stops and prints the formula rather than inserting a typical demand. The result is rounded to two decimal places. It is the classic formula. It ignores quantity discounts, stockouts, and a constraint on warehouse space. The inventory quiz on this hub states the same limit: the calculator refuses to run until the three numbers are entered.
How to use it
Use one period for demand and for holding cost. If demand is annual, holding cost must be the cost of holding one unit for a year. Type order cost as the cost of one order, not of one unit. Read EOQ as an order quantity in the same units as demand. It is not a reorder level. A reorder level is your own lead-time rule, and this page does not invent one.
Worked example
Annual demand 1,200 units, order cost ₹50, holding cost ₹8 per unit. EOQ is 122.47, because the square root of 2 × 1,200 × 50 / 8 is the square root of 15,000. Leave holding cost blank and the tool asks for all three inputs. It does not assume ₹8 for you. The jobs link on this page searches HiringBuddy for published roles matching “logistics”. An empty list means nothing published matched. It is not a comment on the wider market. A signed-in candidate can save the attempt on their profile. Saving is not an application, and it does not show the attempt to an employer. Employers see people who apply to their own jobs.
Questions
- What if I do not know demand?
- Leave it blank. The tool will not forecast it.
- Is EOQ the reorder level?
- No. EOQ is an order quantity. Reorder level depends on lead time and usage you set yourself.
- Which formula?
- The square root of 2 × demand × order cost ÷ holding cost.